Significant growth in the UAE / Australian Trade landscape provides new opportunities for Australian FinTechs

With the launch of Dubai Chambers International Office in Australia in 2023, The CEPA Agreement between Australia and UAE finalised in September 2024, and the collaboration between Dubai International Financial Centre (DIFC) and Dubai Chamber Australia, there are exciting opportunities on the horizon for FinTechs in both regions.

Traditionally, FinTech start-ups are attracted to Silicon Valley, London and Singapore, but Dubai is really making its mark. The Dubai FinTech Summit organised by DIFC is now the world’s largest FinTech Summit. DIFC has an MoU with Dubai Chambers (DC) who recently opened an office in Australia and are aiming to build a superhighway between Australia and Dubai.

Chief Executive at Dubai Chambers Australia, Sophia Demetriades (pictured), says that their office is experiencing increased interest from Australian FinTechs exploring expansion to the Middle East through Dubai.

Overview of the Australian FinTech Sector

Australia’s FinTech industry has rapidly evolved over the past decade, positioning itself as one of the leading FinTech hubs in the Asia-Pacific region. With a strong financial services sector, supportive regulatory environment, and a high rate of digital adoption among its population, Australia has become fertile ground for FinTech innovation. The industry is diverse, encompassing a wide range of sub-sectors including payments, lending, wealth management, insurance, blockchain, and regtech (regulatory technology).

As of 2024, Australia’s FinTech ecosystem comprises well over 1,000 companies, many of which have achieved significant scale and international recognition. The country’s FinTech landscape is characterised by a collaborative environment where start-ups, incumbents, regulators, and investors work together to foster innovation. The Australian government, through bodies like the Australian Securities and Investments Commission (ASIC) and Austrade, have actively supported the industry, launching initiatives like the Enhanced Regulatory Sandbox to allow FinTech’s to test their products and services in a controlled environment.

Growth Drivers

Several factors have driven the growth of the FinTech sector in Australia:

1. High Digital Adoption: Australians are quick to adopt new technologies, making it easier for FinTech companies to introduce innovative products.
2. Supportive Regulatory Environment: The regulatory framework in Australia is conducive to innovation while ensuring consumer protection. ASIC’s regulatory sandbox has been instrumental in helping startups experiment and scale.
3. Strong Financial Services Sector: Australia has a well-established and sophisticated financial services industry, providing a strong foundation for FinTechs.
4. Venture Capital Availability: There has been a significant increase in venture capital investments in Australian FinTechs, facilitating their growth and expansion.
5. Talent Pool: Australia’s universities and technical institutions produce a steady stream of highly skilled professionals, contributing to the growth of the sector.

Dubai’s FinTech Industry and Landscape

Overview of Dubai’s FinTech Sector

Dubai, with its strategic location at the crossroads of Europe, Asia, and Africa, has emerged as a major FinTech hub in the Middle East. The Dubai government’s commitment to innovation, combined with a proactive regulatory approach, has made the city an attractive destination for FinTech companies from around the world.

Dubai’s FinTech landscape is thriving, with particular strengths in areas such as payments, digital banking, blockchain, and Islamic FinTech. The city’s diverse and cosmopolitan population, coupled with high internet penetration, provides a ready market for FinTech products. The UAE government has also been a strong proponent of blockchain technology, aiming to become a global leader in this space.

Dubai International Financial Centre (DIFC) and the FinTech Hive

The Dubai International Financial Centre (DIFC) is a leading financial hub in the Middle East, Africa, and South Asia region. It plays a central role in the development of Dubai’s FinTech ecosystem. The DIFC offers a robust legal and regulatory framework, which is based on English common law, providing international FinTech’s with a secure and familiar environment to operate in.

The DIFC’s FinTech Hive, launched in 2017, is the region’s first and largest FinTech accelerator. It provides start-ups with mentorship, regulatory guidance, and access to a network of financial institutions and investors. The FinTech Hive has been instrumental in attracting global FinTech players to Dubai, helping them scale and integrate into the regional financial ecosystem.

DIFC’s Regulatory Sandbox

The DIFC’s Regulatory Sandbox is a key initiative designed to support FinTech innovation. It allows start-ups to test their products and services in a live market environment under the supervision of the Dubai Financial Services Authority (DFSA). The sandbox provides a controlled environment where companies can experiment with innovative financial solutions without the need for full regulatory compliance during the testing phase. This initiative has been crucial in fostering innovation and attracting international FinTech’s to Dubai.

Why Australian FinTech Companies Should Launch in Dubai

For Australian FinTech companies looking to expand internationally, Dubai offers several compelling advantages:

1. Strategic Location: Dubai’s geographical position makes it an ideal gateway to markets in the Middle East, Africa, and South Asia.
2. Pro-business Environment: Dubai is known for its business-friendly policies, including zero corporate tax and 100% foreign ownership in free zones like the DIFC.
3. Robust Financial Ecosystem: Dubai has a well-developed financial services sector, with a strong presence of international banks, financial institutions, and a growing FinTech ecosystem.
4. Innovative Regulatory Framework: The DIFC offers a transparent and robust regulatory environment, including the DIFC’s Regulatory Sandbox, which allows for innovative financial solutions to be tested and refined.
5. Access to Capital: Dubai has a growing venture capital and private equity scene, offering Australian FinTech’s access to funding for expansion.
6. Cultural Diversity and Skilled Workforce: Dubai’s multicultural environment and access to a skilled workforce make it easier for Australian companies to establish operations and attract talent.

Australian FinTech Companies in Dubai and the UAE

Several Australian FinTech companies have already recognized the potential of the Dubai market and have either launched operations or established a presence in the UAE. Notable examples include:

1. Afterpay: The buy-now-pay-later (BNPL) giant has expanded into the UAE market, leveraging Dubai’s position as a global retail hub.
2. Airwallex: A leading global payments company, Airwallex, has established operations in Dubai, offering cross-border payment solutions to businesses in the region.
3. Pepper Money: Specializing in non-bank lending, Pepper Money has expanded its footprint into Dubai, providing a range of financial products to consumers and businesses.
4. GBST: Delivering technology and digital solutions to enable, support and scale wealth management organisations globally.
5. Rush: Rush provides investors around the globe the ability to buy, hold, send and pay with Australian gold and silver, vaulted in Brinks vaults in Australia.

List of Australia’s 20 Biggest FinTech Companies

1. Afterpay
2. Zip Co
3. Airwallex
4. Prospa
5. Xero
6. Lendi
7. Wisr
8. Pepper Money
9. Tyro Payments
10. Raiz Invest
11. Finder
12. MoneyMe
13. Brighte
14. Novatti Payments
15. Beforepay
16. Bravura Solutions
17. Iress
18. Netwealth
19. Praemium
20. GBST

Recent Australian FinTech Expansions to Dubai

In recent years, several Australian FinTech companies have launched operations in Dubai, driven by the strategic benefits the city offers. Notable examples include:

1. Afterpay: Expanded into the UAE in early 2024, tapping into Dubai’s retail sector.
2. Airwallex: Opened a regional office in Dubai in 2023, focusing on cross-border payment solutions.
3. Pepper Money: Entered the UAE market in late 2023, offering non-bank lending products.
4. GBST: Launched in the UAE in late 2022 with its market leading wealth management administration platform.

Conclusion

The Australian and Dubai FinTech landscapes present unique opportunities for growth and collaboration. For Australian FinTech companies, Dubai offers an attractive market with a strong financial ecosystem, innovative regulatory framework, and strategic access to emerging markets. As more Australian FinTech’s expand into Dubai, the collaboration between these two vibrant ecosystems is expected to drive further innovation and growth in the global FinTech industry.

Dubai Chamber International, Australia Office is headed by Sophia Demetriades Toftdahl, Chief Executive Australia, who is responsible for assisting Australian companies with their smooth entry to Dubai.

Dubai Chambers is divided into 3 verticals: Dubai Chamber of Commerce, Dubai Chamber of Digital Economy, and Dubai International Chamber (DCI). DCI Australia operates as a trade office and support both attraction of Australian companies that want to access the greater MENA region with Dubai as a hub, and expansion of Dubai companies that want to enter the Australian market.

Alongside collaborating with Cameron Dart and Australian FinTech, Ms Demetriades also works closely with The Australian Chamber of Commerce and Industry who signed an MoU with Dubai Chambers earlier this year.

DIFC are already preparing for the Dubai Fintech Summit on May 12 & 13, 2025. Australian FinTech’s are encouraged to attend and Dubai Chambers can assist in scheduling meetings with interesting stakeholder in advance of the event should you reach out to them directly.

For more information please contact Sophia Demetriades directly on [email protected]